YOGYAKARTA Bank Indonesia (BI) continues to monitor opportunities to lower the benchmark interest rate or BI Rate as part of a strategy to encourage national economic growth.
"The Governor's BI rate conveys that we continue to pay close attention to the space for declines in BI to encourage higher growth," he said Director of the Bank Indonesia Economic and Monetary Policy Department (DKEM), Juli Budi Winantya in BI policy activities to Maintain Stability and Encourage Growth, Friday, August 22.
He stressed that interest rate policies must be implemented carefully and measurably, taking into account a number of key indicators such as inflation and exchange rate stability.
"Keeping inflation low on target, the stability of the exchange rate to encourage higher economic growth without disrupting inflation," he explained.
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Juli added that BI does not want the monetary easing policy to trigger economic imbalance. Therefore, the decision to reduce the BI Rate will depend heavily on the dynamics of the macroeconomics that continue to grow.
"Of course, we will continue to demonstrate inflation, so the space will continue to be observed," he said.
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